The Fairness for Coastal School Districts in Development Restricted Areas Act aims to provide additional State school aid to specific school districts located in municipalities governed by the Coastal Area Facility Review Act (CAFRA). A qualifying school district is defined as one that has experienced a net loss in State school aid from the 2017-2018 to the 2024-2025 school year, has a resident enrollment of over 500 students, and is entirely situated in a municipality where at least 20 percent of the land is designated as coastal area. The bill stipulates that these qualifying districts will receive additional aid calculated at $275 per acre of coastal land within the municipality, with caps on the total aid based on student enrollment.

The bill addresses the financial challenges faced by coastal school districts, which have been adversely affected by development restrictions and environmental protections that limit their ability to generate property tax revenue. This situation has been exacerbated by recent reductions in State school aid, particularly under the provisions of P.L.2018, c.67 (S2). By providing targeted financial support, the bill seeks to alleviate the funding shortfalls experienced by these districts, thereby enhancing their capacity to deliver educational services despite the constraints imposed by environmental regulations. The act is set to take effect immediately and will apply to the first full school year following its enactment.